Presentation on theme: "SM 472.42 2 Winter 2012. Syllabus Questions? Readings Wheelen et. al ch 1 what did you notice? Working Through A Case An Approach to Case Analysis."— Presentation transcript:
Readings Wheelen et. al ch 1 what did you notice? Working Through A Case An Approach to Case Analysis
So exactly what is strategy? How can profitable growth be achieved? How can the chances of survival be enhanced? How can competition be withstood? How can we thrive?
Bombardier “strategy” language “strategic investment in new markets” “big player in a small number of markets” “engage in the development of new technologies to keep ahead of its rivals” “Six Sigma” “spin off the recreational products division” core business in planes and trains How will Bombardier thrive?
Bombardier “strategy” language “leader in all markets in which it operates” “exceed customer expectations with innovative products & services” “expertise in developing and commercializing innovative products” pg 2-3
Preparing a Case Case Questions Case Notes What is an “alternative”? an action or cluster of actions that takes the firm in a distinct direction »that could plausibly enable the firm to thrive
Indigo company website Indigo Books http://www.chapters.indigo.ca/home/ stock market history Globe and Mail http://www.theglobeandmail.com/globe- investor/markets/stocks/http://www.theglobeandmail.com/globe- investor/markets/stocks/ How will Indigo thrive?
Prep for Thu reading Wheelen et al. ch 2 sim Adrenaline Sports group work meet decide main tasks for presentation Feb 9 http://buller.prov.ca/BullerCentre/projects/biomass/PAMI_Bio mass%20Research%20Presentation_10-11-04.pdfhttp://buller.prov.ca/BullerCentre/projects/biomass/PAMI_Bio mass%20Research%20Presentation_10-11-04.pdf See slide 18
Examples ch 1 Bombardier2 - 3 Indigo Books21 ch 2 Choice Hotels36 Clodhoppers47 How will they thrive? Situation of each How do we get past “a contest of opinions”?
Generic Strategies 1.value proposition options lowest-cost differentiation features execution pick 1 “What’s our value proposition?” “Why will people prefer to buy what we’re selling?” “Niche” “Our distinctives”
Value Proposition Options PRICEFEATURESEXECUTION DirectTangibleAvailability PriceQualityTiming Discount structurePerformanceConvenience RebatesProprietary propertiesDelivery Credit ratesPre- & post- sales serviceReliability IndirectOptions / choiceIntensity Financial assistanceGuaranteesSales hustle Capital vs. operatingIntangible/ImageService hustle Life cycle costDesignFriendliness Cost absorptionFashions Prestige “Personality”
Value Proposition & Competitive Advantage not the same thing make sure: you actually can beat competition at this you can live off that value proposition there are enough customers that care you can reach them they will pay you enough
Generic Strategies 1.value proposition options lowest-cost differentiation features execution “What’s our value proposition?” Why will people prefer to buy what we’re selling? pg 21 Indigo Books
Generic Strategies 1.value proposition 2.productivity triangle pick any 2 fast cheapgood What 3 product qualities do my sectors’ customers value most?
Generic Strategies 1.value proposition 2.productivity triangle What 3 product qualities do my sectors’ customers value most? accessibility pricequality True North Hideaway Trails End Ross’ Resort Pipestone Happy Landing